Onshore U.S. work drives up profit at Halliburton

Onshore work lifts Halliburton profit profisurges in first quarterNorth American business helps quarterly earnings more than double

BRETT CLANTON, HOUSTON CHRONICLE

Published
5:30 am CDT, Tuesday, April 19, 2011

Halliburton Co. said its profit more than doubled in the first quarter as surging business onshore in North America more than offset declines from political turmoil in North Africa, delays in Iraq and a slowdown in the Gulf of Mexico.

Net income rose to $511 million, or 56 cents a share, up from $206 million, or 23 cents a share, a year earlier, said the oil field services giant, with dual headquarters in Houston and Dubai. Revenue jumped 40 percent to $5.28 billion.

Excluding a charge of $46 million related to its suspended operations in battle-torn Libya, the company said it earned $557 million, or 61 cents a share.

Analysts had forecast earnings of 58 cents on revenue of $4.9 billion, according to a poll by Thomson Reuters.

Halliburton, the first major oil and gas services firm to report quarterly earnings, attributed the higher profit to added activity levels in North American shales and other so-called unconventional rock formations, where large natural gas and crude oil deposits have been found in recent years.

The company is a leading provider of hydraulic fracturing services, the chief method used for cracking open such dense rock formations. It involves forcing millions of gallons of water, sand and chemicals into a well to release oil and natural gas.

Strong operating income gains at the company's North American completion and production business, which includes hydraulic fracturing services, were key contributors in the quarter. North American revenue climbed 75 percent, while revenue from international operations increased 11 percent.

In a statement, Halliburton CEO Dave Lesar said he was "extremely pleased" by the first-quarter results.

"North America delivered strong performance as margins progressed due to increased activity, while Eastern Hemisphere operating income was significantly impacted by geopolitical events in North Africa, delays in Iraq and typical seasonality," he said.

The company said it sees still more growth in North America as customers shift from seeking natural gas in unconventional rock formations to higher-value crude oil and natural gas liquids.

Halliburton shares closed up 32 cents at $47.17 in trading on the New York Stock Exchange.